CO-OWNERSHIP MODEL

Learn about Guidance Residential's Declining Balance Co-ownership Program and how it differs from home loans provided by banking institutions.

Declining Balance Co-ownership Program

Guidance Residential's Shariah-compliant, riba-free home financing

STEP 1
step-1

The homebuyer and Guidance Residential agree to be co-owners in the property.

STEP 2
step-2

The two parties buy the home and the ownership of the property is determined by each party's investment.

STEP 3
step-3

The homebuyer makes monthly payments to Guidance Residential.*

STEP 4
step-4

Over the course of the arrangement, the homebuyer purchases all of Guidance Residential's ownership stake and becomes the sole owner of the property.

*The monthly payment includes a usage fee similar to rental fee for full usage of the home, and the other part of the payment is to increase the equity ownership of the property.

Conventional Mortgages

Home loans offered by banking institutions

STEP 1
step-1

The homebuyer arranges a loan from a bank or mortgage company according to a fixed or floating interest rate.

STEP 2
step-2
The homebuyer purchases the home.
STEP 3
step-3

The homebuyer makes monthly payments to repay principal and interest on the loan.

STEP 4
step-4

Over the course of the loan, the homebuyer repays the debt in full.

Watch a video on the topic

What is the difference between Guidance's Shariah-compliant home financing and a conventional mortgage?

coOwnership video